ComReg Newsletter Winter 2009

ComReg Annual Conference

ComReg held its annual conference in the Conrad hotel, Dublin in October and the theme for this year’s conference was Shaping Ireland’s Future – Communications for the Smart Economy. The event provided an opportunity for key industry figures to meet and discuss the opportunities which lie ahead.

The Conference, which was addressed by the Minister for Communications, Energy and Natural Resources, Mr Eamon Ryan TD, focussed on how innovative or emerging communications services can play a pivotal and enabling role in Ireland’s economic regeneration. A Smart Economy is a networked economy and therefore the role of communications networks and services is critical to realising the vision set out in the Government’s framework for sustainable economic renewal – Building Ireland’s Smart Economy.

International speakers of note made dynamic and informative presentations to the large number of conference delegates. Experienced panel members then discussed the challenges and opportunities facing Ireland and provided insights on the important contribution that can be made by the information and communications technology (ICT) sector.

The conference was facilitated by Dr. John Bowman, the well-known broadcaster and historian.

All of the presentations made on the day are available to view in Conference Presentations of the Publications Section of www.comreg.ie.

Report shows that communications market revenues and volumes decline as consumers seek value by reducing communications spend

In December, ComReg released its Quarterly Report for July-September 2009 (Q3). Overall revenues continued to decline while total voice traffic was also down. Despite this trend, broadband subscriptions increased in the third quarter of 2009 driven mainly by mobile broadband additions.

- The main points of the quarterly survey are:

- Overall market revenues declined by 1.8% in Q3 to just over €996 million

- Total voice traffic minutes declined by 0.5% in the quarter to over 4.5 billion minutes. Mobile minutes still represent the majority (56%) of these minutes

- Total internet subscriptions increased to 1,517,449. Narrowband subscriptions (156,195) continued to fall as broadband subscriptions (fixed and mobile) increased by 4% to 1,361,254

- The broadband per capita penetration rate is 30.5% (including mobile broadband) and 21.3% (excluding mobile broadband)

- Mobile penetration per capita (including mobile broadband) was 117% and 108% excluding mobile broadband

- Mobile phone average revenue per user (ARPU) declined to €37.88 per month in the quarter. In addition SMS volumes fell for the first time quarter on quarter by 4.1%

The full report (ComReg document 09/101) is available here

ComReg publishes report on Digital Dividend consultation

In October, ComReg published its Response to Consultation on Ireland’s Digital Dividend (ComReg Document 09/81).

As Europe migrates from analogue to digital terrestrial television, the possibility arises for carrying an even greater volume of information over radio spectrum. This move to digital television has the potential to release a spectrum dividend or Digital Dividend, which may be used for additional and enhanced television services and also for new and innovative telecommunications services.

Ireland’s Digital Dividend provides a unique opportunity to develop and utilise new and innovative forms of broadcasting and communications services for the benefit of the citizens of Ireland. Proposals from the report include:

- clear the 800 MHz band to accommodate uses other than broadcasting and provide timely access to this band;

- consider additional digital dividend spectrum, once the benefits of the 800 MHz band can be fully realised and the core digital broadcasting requirements can be protected; and

- encourage innovation through Test & Trial Ireland rather than create a spectrum innovation reserve using digital dividend spectrum.

ComReg will now further develop its position on Ireland’s Digital Dividend and will consult again on the matter, having regard to the issues raised to date and developments at a national and international level.

Consumer Queries and Complaints Statistics

October to December 2009
During the three month period, October to December 2009, consumers contacted ComReg’s Consumer Management Team with 3,492 issues (both queries and complaints) about their telephone, internet and postal service providers.

Consumers Contacted ComReg in relation to the following main areas:-

Billing Customer Cancellation of Services 6%
Billing Disputed Services Charges 9%
Billing Alleged Overcharging 3%
Billing Other 13%
Contractual Cancellation penalties 4%
Contractual Misleading Sales Practice 4%
Contractual Terms & Conditions 12%
Contractual Other 2%
Customer Service 7%
Information Request, Numbering, Authorisation 4%
Installation 5%
Internet Speed & Availability 3%
Service Repair 6%
Service Repair Loss of Service 5%
Unsolicited Communications 4%
Others including categories each less than 2% 13%

Survey reveals over half of businesses reduced communications spend in 2009

ComReg’s second business survey of 2009 was published in December. The survey is based on research conducted by Millward Brown Lansdowne during September and October on a nationally representative sample of 485 Small to Medium Enterprises (SMEs), defined as less than 100 employees, and 66 Corporates, defined as more than 100 employees.

Findings from the business survey include:

- In line with continued difficult economic times, there has been an increase of businesses (42%) saying “getting the best value for money” is the main reason they chose their main fixed line supplier.

- While the majority (92%) of businesses do not use a single telecoms operator for fixed and mobile communications, 6 in 10 of these are interested in doing so.

- 83% of all businesses in Ireland provide their employees with company mobile phones - this has remained at similar levels over the last two years.

- Lack of requirement and the expense of data roaming remain the main reasons given by businesses for not actively encouraging data roaming among their employees.

- Overall 94% of Irish businesses have internet access. There have been small increases in access among both SME and Corporates in this research.

- Reliability of broadband service is the most important consideration for businesses, with 57% saying this. This is higher among corporate businesses (62%) and businesses based in the rest of Leinster (64%).

- Overall, 56% of businesses claim to have reduced spend on their communications services in the past twelve months. Corporates (61%) and those businesses employing 10-49 people (64%) are most likely to claim to have reduced spend.

The full set of published results - ComReg Document 09/92 - is available here

ComReg research report analyses internet connectivity in Ireland

ComReg recently released a research report examining internet connectivity among consumers and businesses. The report focuses on why certain elements of the population and some businesses choose to remain offline or only use the internet through a narrowband/dial-up connection.

Key findings include:

- 66% of residential consumers use the internet in Ireland in 2009, compared to 45% in 2003.

- Eurostat data indicates that household internet usage in Ireland in 2008 was 63%, ahead of the European average (60%).

- In Ireland, older consumers and/or those who do not engage with other technologies are less likely to use the internet.

- Over one third of narrowband users in Ireland are aged 45 and over.

- According to ComReg survey data, there is almost ubiquitous internet usage amongst businesses in Ireland. As of June 2009, 96% of corporates and 92% of Small to Medium Enterprises (SMEs) have an internet connection.

- Eurostat data indicates that business usage of the internet in Ireland (96%) is ahead of the European average (93%).

- More than half of those companies with a narrowband connection have between one and nine employees and over three quarters of businesses with a narrowband connection are in a rural area or village.

The full report (ComReg document 09/84) is available here.

• According to Eurostat, between 2004 and 2008, the percentage of enterprises with a narrowband connection in Ireland has declined by thirty two percentage points. Ireland was level with the European average.

An Post Quality of Service performance between July and September 2009

ComReg’s latest independent report on the Quality of Service performance by An Post in Quarter 3 of 2009 shows that:

85% of mail was delivered throughout the State within one working day in this quarter. This quarterly performance result compares with 80% for the same quarter in 2008.

The year-to-date performance for next day delivery stands at 84% for the period January-September 2009, which is a 5% improvement for the same period in 2008. An Post’s target for next day delivery is 94%.

99% of mail was delivered within 3 working days during the quarter ending 30 September, 2009.

The year-to-date performance for the period January-September 2009 for delivery over 3 working days stands at 98%, still short of An Post’s 99.5% performance target.

While there has been no improvement over the previous quarter, ComReg notes the 5% performance improvement in the year-to-date when compared with the corresponding period in 2008. Notwithstanding, An Post must achieve further considerable improvements to realise its target of 94% for next day delivery.

The full set of published results – ComReg Document 09/91 – is available here.

The independent survey, conducted by Ipsos MRBI, is based on a nationally representative sample of 7,021 test mail items, posted and delivered throughout the State, to identify on time reliability of An Post’s domestic single piece mail.